Crypto Assets Under Management up by 223%; Return 163% in 1 Year

Cryptocurrency investment funds now command over $7.1 billion in assets

Crypto Assets Under Management up by 223%

The year 2018 did begin amid a bit of a lull for cryptocurrencies in general. Major crypto assets witnessed a decline in price and market cap in the first quarter this year. However, the second quarter saw most of them recover, albeit remaining a distance from 2017 highs. The crypto fund space, however, continues to grow in size and importance. From a humble $675 million industry at the beginning of January 2017, crypto assets under management now value over $7.1 billion in the market (as of July 1st, 2018). The figure stood at $2.2 billion exactly an year ago, thus, showing a 223% rise in 1 year alone.

AUM Now Over $7 billion

The year so far has seen 96 new crypto fund launches, with a forecast for the year vcosing at around 165. In contrast, 2017 recorded 156 new crypto fund launches. The amount of assets under management rose from $675 million to $5.9 billion. Hedge funds largely dominate the universe of over 400 cryptocurrency / blockchain investment funds currently. There are also a large number of venture capital funds for blockchain and cryptocurrency. A few private equity funds and blockchain ETFs have also surfaced, raising the industry’s AUM to $7 billion.

163% Returns in 1 Year

According to data provided by Eurekahedge, the cryptocurrency hedge fund index has delivered an annualized return of 162.79% (as of July 2018). The index is an equally weighted index of 17 constituent funds. Base weighted at 100 in June 2013, the index is designed to provide a broad measure of the performance of underlying hedge fund managers that allocate to Bitcoin and other crypto-currencies.

2017, which was an exceptional year for both cryptocurrencies and crypto funds, those funds deliver a whopping 1708.50% return. With this year’s tally still at a negative -45.58%, April was a good month – recording +43.80%.

To remain updated on the latest news, views and launches in the crypto fund space, visit our crypto fund page on Bitrazzi.com.